Controlling, Leading
Four Functions of Management
Management has always been viewed as under the purview of business; however, management is broad in scope and entails the ability to control, lead, plan, and organize within any organization setting or situation. Management can thus encompass a variety of scenarios, such as managing a department, a baseball team, an itinerary, or one' own finances. The formal definition of management is 'the planning, organizing, leading, and controlling of human and other resources to achieve organizational goals efficiently and effectively. An organization's resources include assets such as people and their skills, know-how, and knowledge; machinery; raw materials; computers and information technology; and financial capital.' (Jones & George 2006, p. 5). Without an in-depth knowledge of four key functions of management, a manager will not be able to perform the duties and responsibilities that go with the office.
The first aspect of management is the ability to plan. This includes the ability to formulate strategies and courses of action based on the vision, mission, and objectives of the organization. Depending on the level of management, entry-, mid-, or high-level, the manager is expected to develop strategic, tactical or operational plans designed to achieve the identified goals of the organization. Upper management sets the goals; all planning thrusts of subordinate managers must be aligned with these. The manager must be able to identify desired results and provide guidance in the key steps that will meet the objectives in qualitative terms.
Plans cannot come to fruition without resources. Resources include human, financial, supply, and logistics. Indeed, the planning function of management is a critical endeavor, providing the strategic, tactical and operational blueprint of how things are to be done and how goals are to be achieved.
Once there is an approved and budgeted plan, the manager's next task is to organize the requisite resources to effect implementation of the plan. Through organization, managers establish a structure of working relationships that allow people to interact and work collaboratively to achieve organizational goals. Organizing requires grouping people into departments according to the kinds of job-specific tasks they perform (Jones & George 2006, p. 12). Without proper organizational setup and function, it is almost guaranteed that plans will fail and resources would be needlessly wasted. It is the onus of the manager to be able to organize people and resources to ensure that the objectives are met with minimal disruption and no wasted resources. In the early days of Apple Computers, for example, CEO John Scully and Chairman Steve Jobs were competing so fiercely for control of the company that 'neither of them had the time or energy to ensure that Apple's resources were being used efficiently' (Jones & George 2006, p. 4). Jobs played favorites, pitted teams against one another, and failed to develop a research budget, resulting in tremendous waste. Organizing also means the ability to ensure that the sequence of events and activities is properly implemented so that there will be no overlap or unnecessary distortions in the work schedule. Without the organization skills that Jobs later learned and brought back to Apple, the teams of the company's early days worked at cross purposes, without the overarching goals of Apple in focus.
Leading is an important aspect of management because it extends beyond industry-specific knowledge and training to interpersonal skills. Good leadership depends on the use of power, influence, vision, persuasion, and communication skills to coordinate the behaviors of individuals and groups so that their activities and efforts are in harmony and to encourage employees to perform at a high level (Jones & George 2006, p. 12). Not all managers are good leaders and vice versa, but to truly excel in management, a manager must train to be a leader. Being able to lead people enables a manager to achieve organizational objectives at a better rate and with excellent results. A fine example of leadership is illustrated with a look into practices at Flight Centre, a Brisbane-based travel company with strong and sustained growth. The company is 'highly decentralised,' (McShane & Travaglione 2005, p. 501) meaning that employees within the hierarchy are empowered. Their belief in themselves as stakeholders is amplified. Good leadership, then, is not totalitarian rule, but a skill set that draws the best performance from others.
To ensure the organization is functioning at optimal capacity, a good manager needs control. Control is the function of management that monitors inputs, processes, and outputs. By being able to monitor operations, the manager ensures that actions are focused on attaining organizational goals. Control also enables managers to evaluate how well they themselves are performing the other three functions of management -- planning, organizing, and leading -- and to take corrective action (Jones & George 2006, p. 12). The success of mortgage lender John Symond shows the value of control as defined in this way. Over the last number of years, the company 'has experienced a series of near-changes, each of them canny attempts to broaden the brand or enter new markets' (De Bruyn 2007, p. 27). Management looked at the market and altered its course in response. Managers would have had to take stock of their functioning in the areas of planning, organizing, and leading and take the actions needed to expand company influence and provide more and greater services to customers.
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